The governments of Macedonia and Germany, local utility ELEM and KfW Development Bank signed agreements for the project of new district heating system for Bitola, Novaci, Mogila and Logovardi. The bank provides a EUR 39 million loan with fixed interest rate of 1.5% for 15 years, including a grace period of four years, according to a report by MIA news agency.
ELEM is obligated to provide EUR 7.5 million from its funds. The first phase is for a 12.5 kilometre pipeline from coal-fired power plant REK Bitola to the town itself, with a substation and distribution network, as well as connections for the three remaining villages in the country’s southwest.
The project is for the utilization of waste heat from the power plant. The first phase includes 35 public facilities. Later on, distribution network can be constructed for Novaci, Mogula and Logovardi. Vice premier and minister of finance Zoran Stavreski said significant savings of wood and heating oil will be achieved, alongside benefits for the environment.
KfW will transfer its funds to the contractor which will be picked at an international tender.